Bakery giant Finsbury Food Group has today announced the proposed acquisition of Johnstone’s Just Desserts (Johnstone’s), from administrators FRP Advisory.
The firm, which bought Fletchers Group of Bakeries last year, said that the purchase of Johnstone’s would escalate the company’s entry into the foodservice cake market. The acquisition would also save the jobs of 150 employees.
Johnstone’s, based in Glasgow, is a supplier to leading national coffee shop chains, and produces cakes such as caramel shortcake and brownies.
Johnstone’s appointed administrators from FRP Advisory in March, following the loss of contracts with two of its key independent customers.
Completion of the acquisition by Finsbury is conditional on the finalisation of property lease details, which it hopes to complete as soon as possible.
John Duffy, chief executive of Finsbury Food, commented: "Johnstone’s Just Desserts will be a bolt-on acquisition and is in line with our strategy to diversify into new channels. This illustrates the group’s continued reach into the foodservice ’out of home eating’ market and the broadening of our product offering and customer base.
"The strength of Johnstone’s customer relationships is testament to the quality of its products and we look forward to welcoming the company into the Finsbury Group and providing the resources and investment to develop its full potential over the coming years."
The Johnstone’s site is based in East Kilbride, Glasgow, and it generated a turnover of around £9m ($13.7m) in 2014.